Real estate credit, well mastering deadlines
When acquiring real estate, it is important to know the dates and deadlines defined by law concerning the obtaining of a loan by a banking organization. An essential step not to be overlooked under any circumstances. Here is the instructions.
Validation and acceptance period
At the end of the negotiations concerning the mortgage, the bank sends a free offer of credit to the borrower by mail and especially not by hand. This offer obeys the law known as Scrivener 2 of July 13, 1979, basis of the legislation of the real estate loans to the private individuals.
It mentions a certain number of compulsory information:
- identities of the lender and the borrower;
- nature of the loan;
- amount and total cost of the credit;
- loan duration, details and total cost of insurance;
The lending institution has the obligation to maintain the conditions for granting the loan for a minimum period of thirty days. It is only from the eleventh day that the borrower can accept this loan offer from the bank, after having dated and signed it, the postmark being taken.
For example, if you receive an offer from your bank on February 17, you will not be able to accept it until February 28. You will therefore have the time necessary to carefully read all the details of this operation and possibly finish comparing the offers of credits from other lending institutions.
Deadline for canceling the loan for non-conclusion of a real estate transaction
Also note that the contract is accepted only if the real estate transaction financed by this credit is itself concluded within four months. This means that if the contract to purchase the property is not signed at the end of these four months, the credit contract with the financial institution will be automatically canceled.
However, this period can be extended by both parties, buyer and seller. Otherwise, the sums released by the bank and the study costs must be reimbursed by the borrower.
Be careful to facilitate your payment
The next step will see the transmission by the bank of the loan contract signed by the borrower to the notary. You will need to remain attentive regarding the date of signing of the deed of sale at the notary’s office and the payment of monthly payments to your advisor. Indeed, to better facilitate your management, it will be better to match these two dates. This will prevent you from unnecessarily paying interim interest.
And you, what difficulties have you possibly encountered during your mortgage? Tell us about your experience, the blog is there for that!